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Pure Competition (0)

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Pure Competition
Competition
The word “competition” may be used in two ways :
    • rivalry – (synonym; opposition, antagonism)
    • structural competition or “pure competition”
The main characteristics of competition:
  • Number of firms
  • Type of product
  • Control over price
  • Conditions of entry
  • Nonprice competition
  • Information flow
    Pure Competition
    • Involves very large numbers of sellers and buyers.
    • Firms producing identical or homogeneous products .
    • Standardized product (a product identical to that of other producers ). (ex. corn or cucumbers).
    No control over the price: "Price Takers" ( the firms have no market power ) .
    Pure competition markets do not actually exist.
    • Note : Pure competition does not actually exist in our society, and the agriculture industry is the closest industry to being purely competitive.
    The pure competition model is used as a standard to evaluate the efficiency of our economy (something to compare to and help our understanding of economy.)
    Monopolistic Competition
    • Involves large number of firms, but not as many as in pure competition.
    • Produces differentiated products
    • In marketing , product differentiation (also known simply as “differentiation” is the process of distinguishing a product or offering
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    Pure Competition #1 Pure Competition #2 Pure Competition #3 Pure Competition #4 Pure Competition #5 Pure Competition #6 Pure Competition #7
    Punktid 50 punkti Autor soovib selle materjali allalaadimise eest saada 50 punkti.
    Leheküljed ~ 7 lehte Lehekülgede arv dokumendis
    Aeg2011-11-30 Kuupäev, millal dokument üles laeti
    Allalaadimisi 9 laadimist Kokku alla laetud
    Kommentaarid 0 arvamust Teiste kasutajate poolt lisatud kommentaarid
    Autor meeryke Õppematerjali autor

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